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McGraw Hill Financial to acquire SNL Financial

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World Coal,

McGraw Hill Financial has signed a definitive agreement to acquire SNL Financial for approximately US$2.225 billion in cash. An estimated present value of approximately US$550 million is expected to result from the transaction. It is reported McGraw will fund the transaction with approximately US525 million cash and US$1.7 billion new debt. Excluding amortization, the transaction is projected to be accretive to adjusted diluted EPS in 2016, and, on a GAAP basis, in 2018.

"We are enthusiastic about SNL because it is a fast-growing, highly complementary subscription-based business that will enable us to accelerate our strategy to be the leading provider of transparent and independent benchmarks, analytics, data and research across the global capital, commodity and corporate markets," commented Douglas L. Peterson, President and CEO of McGraw Hill Financial. "This transaction provides unique opportunities to provide our customers with end-to-end data solutions and to develop exciting new services, enhance existing offerings and expand into attractive adjacent markets. Adding SNL to our portfolio creates a high-growth market data and analytics business that will leverage the power of the S&P Capital IQ and Platts global platforms to realise the full potential of SNL's financial and commodities products."

Mike Chinn, President and CEO of SNL Financial stated: "This is an exciting day for our clients, employees and shareholders and a true milestone event in our 28 year history … New Mountain Capital has been a tremendous partner for us over the last four years. The team there provided excellent guidance and supported numerous growth initiatives that enabled us to double our revenues over that period. We believe McGraw Hill Financial –Doug Peterson and his leadership team – are ideal partners as we relentlessly pursue our mission of providing the highest quality sector-specific data, news and analytics to our clients. We're thrilled to continue this journey with the McGraw Hill Financial team and join their portfolio of market-leading brands."

The transaction is projected to complete in 3Q15, subject to regulatory approvals and customary closing conditions.

Edited from press release by Harleigh Hobbs

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